Business Strategy Tracy en 24304

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Business StrategyThe Brian Tracy Success Library Brian TracyCopyright 2015 AMACOM, a division of American Management Association112 pages[@]

Rating9 Applicability8 Innovation8 Style8

FocusLeadership & Management

Strategy

Sales & Marketing

Finance

Human Resources

IT, Production & Logistics

Career & Self-Development

Small Business

Economics & Politics

Industries

Global Business

Concepts & Trends

Take-Aways Study and learn from the brilliant strategist Alexander the Great.

Alexanders strategy enabled his 50,000-man army to defeat Persias million-man army.

The most profitable companies follow well-developed strategies, yet most companiesfail to develop formal strategies to achieve their goals.

Follow seven principles of effective strategy: Have a clear objective. Stayoffensive and move forward. Mass your resources. Maneuver to be flexible.

Emphasize concerted action so everyone works as a team. Surprise your rivals tokeep them off guard. Use exploitation to press your advantage without relaxing.

Use four strategic planning principles: Create a niche with specialization. Stand outwith differentiation. Target buyers with segmentation. Focus with concentration.

Develop and implement strategy in a five-phase process: data collection and analysis,formulation, project planning, implementation, and monitoring and updating.

Sometimes the best strategy is to stop what youre doing and start something new.

Sometimes you must accept that a well-liked, costly initiative just isnt working.

Your corporate strategy must reflect your organizations values.

This summary is restricted to the personal use of Ronojoy Chatterjee ([email protected])

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getabstractWhat You Will LearnIn this summary, you will learn:r1) How to use the seven principles of effective strategy, 2) How to apply the fourstrategic planning principles, 3) What five questions strategists should ask, 4) How to develop and implement yourstrategy in five phases, and 5) How Alexander the Great set an example of the brilliant use of strategy.

getabstractReviewIn most industries, 20% of the companies those with well-developed corporate strategies make 80% of the profits.Business author Brian Tracy explains strategy and discusses why its so important. He identifies its components,outlines what strategy requires and elucidates how companies can develop comprehensive strategies to achieve theirgoals. Tracy also provides a fascinating report on how Alexander the Greats superior use of strategy enabled his50,000-man Macedonian army to defeat the million-man Persian army in the 300s BC, though Tracys focus is onstrategy, not on precise history. getAbstract recommends this concise but solid manual to corporate strategists, tothose whose firms need strategic planning and to students of strategy.

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getabstractStrategic planningstarts with knowingwhere you are now,envisioning your idealfuture, then focusing onwhat needs to change inthe present to create thefuture.

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getabstractStrategic planningisthinking throughthe action steps thatyou are going to take toachieve your goals.

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The Worlds Greatest StrategistAlexander the Great (356-323 BC) was king of Macedon, an ancient kingdom in northernGreece. He was known as the Great due to his strategic prowess. When he became kingat age 20, the Macedonians ruled all Greece.

Alexander learned that disloyal plotters and rebels intended to assassinate him and freethe Greek city-states from Macedonian rule, so he reorganized the Macedonian army,appointing generals he could trust. Then, he defeated the insurgent armies. By 21, Alexanderwas the undisputed master of Greece. He set out to introduce Greek culture worldwidethrough conquest. He permitted kings who didnt oppose him to stay in power if they paidan annual tax to Macedon. Alexander invited soldiers from other countries to join his armyfor the opportunity to capture booty.

Darius and the Persian Empire ruled all the Middle East as far east as India and present-day Pakistan. Alexander invaded the Persian Empire, and his 22,000-man army routedDariuss 50,000-man army. Darius organized a million-man army to fight the Macedoniansat Gaugamela.

The night before the battle, Alexander communicated his battle plan to his generals. ThePersian army was made up of more than 30 tribes with different languages, differentcultures, different orders of battle, different religious rites and different military structuresof command. Their only commonality was loyalty to Darius. Alexander realized that if hekilled Darius, or made him flee, these factions would quickly disperse. Alexander plannedto attack the center of Dariuss army, drive through it and kill the emperor.

Alexander invented the oblique formation. He lined up the Macedonian army at an angleand to the right of the center of Dariuss army. Confused, Darius ordered his army to shiftto the right to confront Alexanders maneuver. The Persian soldiers and their commanderspreferred to advance straight ahead, as had every other army in history until then. Taking




getabstractOne managementskill is always the mostvaluable, and that isthe ability to developa clear, workablestrategic plan thatgives you a competitiveadvantage in yourmarketplace.

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getabstractFirstthink about andagree on the foundationprinciples of yourbusiness.

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getabstractLess than 3% ofpeople at all levels ofbusiness and industryhave clear, specific,written, time-boundedgoalsthat they areworking toward on adaily basis.

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getabstractYou are doing andoffering the rightbenefits and priceswhen you enjoy asteady increase in salesand profitability.

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advantage of a breach in the shifting Persian line, Alexander charged his cavalry intothe heart of the massive army. Not anticipating this thrust against his command center,Darius mounted a horse and fled the battlefield. The news of his abandonment spreadand individual units of his army scattered. The Macedonian army waded into the fleeing,leaderless troops, killing them wholesale. Some 400,000 Persians died. The Macedonianslost 1,247 men.

Alexander, then 23, became the ancient worlds most powerful leader. The seven essentialstrategic principles he used to defeat Darius remain valid and applicable for strategists including corporate planners as they were in ancient times. Organizations andarmies that fail to apply even one of the following strategic principles can experiencecatastrophic defeats.

The Principles of Effective StrategyTo succeed, put these seven principles to work:

1. The principle of the objective Success requires having a firmly established goal.You must know how you will accomplish it, and your employees must know what theyare supposed to do. Alexanders goal was to become ruler of the world. That requireddefeating the Persians and getting rid of Darius. Alexander communicated his battle planand strategy to his generals, so everyone would know what actions to take.

2. The principle of the offensive Napolon Bonaparte said, No great battles are everwon on the defense. To succeed, go on the offensive with new products, new services,new processes and new ways of doing business. Alexander knew the only way to defeatthe Persians was to take the fight directly to them. To beat your competitors, do the sameto them.

3. The principle of the mass Generals defeat enemy armies by massing their forces ata critical point at a critical time. Alexander beat the Persians by creating a breach in theirlines that he could exploit. In business, take advantage of this principle by deliveringthe best products or services in your niche. Dont expand into other product or serviceareas until you lead your niche market. According to Bill Gates and Warren Buffett, themost important element in business is focus. Always focus on the products and servicesthat your company does best.

4. The principle of maneuver Generals who prevail outmaneuver their foes, just asAlexander outmaneuvered the Persians. Expert strategists remain flexible; they considerwhat might happen and plan accordingly. Be ready to move forward, backward andsideways in the market, if necessary.

5. The principle of concerted action Teamwork is paramount. Alexander knew hecould count on his troops because he trained them to be the worlds most disciplinedsoldiers. Promote a culture of teamwork where employees always speak of us, we andour and see the company as a logical extension of themselves.

6. The principle of surprise Alexander surprised the Persians and kept them off-balance. Do the same to your business rivals by introducing innovative products andservices and by using novel strategies and processes.

7. The principle of exploitation Once you achieve your goals, dont stop. Keepmoving ahead to exploit your advantage. Your competitors will do everything they canto make up lost ground. Stay on the offensive.

Five Critical Strategic QuestionsStrategize to improve your companys return on investment, secure a new position inthe marketplace, exploit opportunities and spearhead new actions. To carry out strategic




getabstractEmbed the strategyin the company. Thismeans that most ofyour employees fullyunderstand, accept andsupport the strategy.

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getabstractBecome brillianton the basics ofstrategic planningby continuing to askand answer the rightquestions.

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getabstractSpecialize and do afew things exceptionallywell. Your chosen areaof specialization largelydetermines the future ofyour business.

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getabstractStrategic planning isnot only about what youneed to start doingIts also about what youneed to stop doing.

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planning, ask: 1) Whats your current situation? 2) How did you get to where you aretoday? 3) Where do you want to be in the future? 4) How are you going to get there?and 5) What do you need? That is, can you identify the assets, such as skills, resources ormoney, that you require for achieving your goals? Strategizing includes conceptualizingan ideal future for your company and working backward to figure out the steps requiredto achieve that future.

Strategic Planning PrinciplesInclude everyone who will directly implement your strategic plan in the process offormulating it. The senior executive ultimately responsible for implementing the strategyshould participate in the entire process. Otherwise, this executive will have no investmentin the strategy and may prove reluctant to fully support implementation. Corporatestrategy concerns products, services, customers, markets, finances, people, technology andproduction capability. Whatever your focus, make sure your goals are clear. Communicatethem to everyone in your company and to your shareholders, stakeholders and consumers.Follow four strategic planning principles:

1. Specialization Focus on what you do best. If you expand beyond your core productsor services, move only to an adjacency area a new product or service line thatexpands your core business.

2. Differentiation Separate your firm and its offerings from your competitors.3. Segmentation Target the ideal customers most likely to buy your goods.4. Concentration Apply your resources where they will do the most good.

Formulation and ImplementationThe Kepner-Tregoe consulting firm suggests a five-phase plan for creating andimplementing strategy:

1. Strategic intelligence gathering and analysis Use only the best data available.2. Strategy formulation Include a time frame and an endpoint. As you formulate a

plan, catalogue your current, modified and new products.3. Strategy master-project planning List and prioritize all your projects. This pool

of projects is your master plan for the strategy.4. Strategic implementation Put the proper structure in place. Align your strategy

with your organizational structure, and communicate your strategic plan.5. Monitor your strategy Update as necessary.

Everyone in your organization must team up to make your strategy work. The businessunits must integrate their actions. Offer incentives tied to the strategic initiative to motivateemployees. Implement the necessary controls to keep everyone on track.

The strategy you choose determines who your rivals will be; their responses will requirefurther strategizing. Make the effort necessary to ensure that your customers view yourproducts or services as their best choice.

Driving ForceConsultants Benjamin Tregoe and John Zimmerman stress the importance of identifyingyour driving force, that is, your primary strategic concept and your quantitative principle.This force is the point of the spear of business planning. Each of these factors can be adriving force:




getabstractThe most successfulmen and women in theworld seem to be thosewhose values are clearto them. They refuse tocompromise them forany short-term gain oradvantage.

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getabstractGet the facts. Getthe real facts. Not theapparent facts, thehoped-for facts, or theobvious facts. Get thereal facts based onanalysis. Facts dontlie. (Harold Geneen,ITT)

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getabstractPeter Drucker oncesaid that, even whena business is startingout at a kitchen table,if the business doesnot dream of worldleadership, it will neverbe a big success.

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Product or services Align your offerings to fit the scope of your market. Market needs Provide what consumers want. Technology-driven driving force Structure your business by using the

latest technology. Production capability Ensure that you possess the capability to keep up with your

projected growth. Ikea, for example, constantly creates more and improved furniture forgreater numbers of consumers in markets that keep growing.

Method of sales You could use retail, wholesale, direct mail, Internet, distributorsor manufacturers representatives.

Size and growth For example, automaker Toyotas motivating force is toconsistently increase its market share. As sales grow, Toyota applies economies ofscale to lower production costs and increase profits.

KWINKSometimes, the most important strategic insight to embrace is knowing what I nowknow (KWINK). This means honestly accepting that certain initiatives no matterhow much you want them to do well and no matter how extensive their sunken costs arent working. When you identify dysfunctional or underperforming products or services,ruthlessly discontinue them or divest them.

To move forward, you may have to abandon products or functions that worked in the past.Having to divest should never make you cautious or lead you to think small. Be readyto create an entirely new market if you find a promising niche, product or service. WhenNetscape introduced its web browser which reshaped the video rental business, consumerviewing habits, film and television distribution and audience polling it fearlessly unveileda new product for unknown customers.

The Importance of Your Corporate MissionStrategy should carve out and delineate the path to accomplishing your mission, whateverit may be. Stating a crystal-clear mission requires knowing your values, your visionandyour purpose. Use a specific and measurable mission statement to spell out your goals toeveryone in your organization.

You can start with a generic mission statement as a model and insert your company specifics.A generic statement might read: We will provide the finest example of our product to thecorrect market to create significant improvements in our consumers professional and homelives. We will always upgrade the quality and functionality of our offerings and never stopseeking out, finding and selling to new and ever-more loyal consumers. We will increaseour market share and profits by at least 20% annually.

Your strategy should reflect your companys qualitative never quantitative valuesand foundational principles, such as integrity, quality, customer service, innovation,entrepreneurship and profitability. Your strategy should also support your vision. The rightstrategy can make your vision however ambitious a reality.

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About the Authorgetabstract

getabstractBrian Tracy is chairman and CEO of Brian Tracy International, a training and development firm. His other booksinclude No Excuses!, Eat that Frog!, Maximum Achievement and The Psychology of Selling.



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